Sentences with phrase «food and grocery margins»

JPMorgan expects food and grocery margins to fall 91 basis points to just 3.23 per cent — less than half those at Woolworths — because of operating deleverage, higher operating costs and gross margin compression from reducing inventories.

Woolworths stock has fallen 14 per cent this month, partly on the back of weaker - than - expected first quarter sales and warnings from analysts that food and grocery margins are unsustainable.

Metcash has sacrificed food and grocery margins in an attempt to protect IGA volumes and sales, but retailers complain their cost of goods is still too high and they can't compete with Coles and Woolworths on price.

Not exact matches

Secondly, the aforementioned Food and Grocery Council published research last year that found the gross margins of FMCG suppliers in Australia fell from 41 per cent in 2010 to 38.5 per cent in 2013, and that their EBIT margin levels were 7 per cent lower than a sample set of its international comparators.

The $ 90 billion food and grocery sector risks turning high - margin, high - growth categories such as health and beauty into commodities through over-reliance on promotions, says Procter & Gamble's Australia and New Zealand managing director Antoine Brun.

UBS analyst Ben Gilbert said retailers were responding to the shrinking pool of supplier funds by using fresh rather than packaged food and groceries to lure shoppers, improving their private label offers and using price «creep» (price rises that are not passed on to suppliers) to boost margins.

Australian Food & Grocery Council chief executive Gary Dawson said that while retailer profit margins would fall to an average of about 5.3 per cent this year they remained well above those of food retailers in the US (3.8 per cent) and Britain (2.0 per cent) and the global average (3.2 per ceFood & Grocery Council chief executive Gary Dawson said that while retailer profit margins would fall to an average of about 5.3 per cent this year they remained well above those of food retailers in the US (3.8 per cent) and Britain (2.0 per cent) and the global average (3.2 per cefood retailers in the US (3.8 per cent) and Britain (2.0 per cent) and the global average (3.2 per cent).

Metcash's food and grocery distribution margins have halved over the last six years, falling from more than 4 per cent in 2011 to 2 per cent in 2017 due to operating deleverage and price investment.

Mr Cousins endorses Woolworths» plan to cut grocery prices, boost service in supermarkets and improve its private label range to better compete with Aldi, but says the investments will lead to a significant earnings rebase as food and liquor margins fall from 8 per cent to at least 6 per cent.

Food industry sources say the major retailers are using private label groceries to gain market power and increase profit margins at the expense of branded suppliers, which are subsidising private label with profits from brands.

Food and grocery suppliers have experienced declining margins in recent years as the supermarket wars have heated up.

Mr Goyder and his senior management team at Coles, led by Ian McLeod and John Durkan, have previously accused multinational grocery suppliers of driving up food prices by generating excessive profit margins in Australia and enjoying dominant market share in certain categories.

However, ACCC analysis indicates that these increases in gross margins could have only made a small contribution to overall food price inflation.2 In other words, the vast majority of grocery price increases in Australia are attributable to other factors, such as supply and demand changes in international and domestic markets, increases in the costs of production and domestic weather conditions.

Fresh food margins are also higher than those in dry and packaged groceries and can boost retailers» gross margins.